Money Wellness

cost of living

Published 02 Aug 2023

1 min read

Cost of living crisis ‘starting to hit wealthier households’

The cost-of-living crisis is no longer affecting only low-income households, a new study has found. Research by Grant Thornton and Retail Economics has predicted, by May 2024, the typical household will be £2,300 worse off than in October 2021.

A young couple go through their finances
routledge

Written by: Rebecca Routledge

Senior Content Manager

Published: 2 August 2023

CEO at Retail Economics Richard Lim explained the “relentless rise in interest rates” means the cost-of-living crisis is no longer restricted to the least affluent households.

He said more and more households were struggling with housing costs due to rising interest rates.

“As pandemic savings have been whittled away, the squeeze on finances has become a war of attrition for many households."

Lim predicted households are probably looking at another ten months of pain when they’ll be forced to try and cut back on spending.

The study found 37% of households questioned in May this year said they were planning to make cutbacks in all areas, compared to 24% 12 months earlier.

Money Wellness findings

The study’s findings tally with our own statistics which show the number of people coming to us for debt advice has risen consistently over the past three months.

routledge

Written by: Rebecca Routledge

Senior Content Manager

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

Published: 2 August 2023

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

Read our latest news or check out other popular pages on our website:

routledge

Written by: Rebecca Routledge

Senior Content Manager

Published: 2 August 2023

More blogs on cost of living

View all
The economy’s growing - so why don’t we feel better off?
cost of living

The economy’s growing - so why don’t we feel better off?

Living standards are declining in the UK.

Read more
cost of living

The true cost of being single

Why is being single more expensive?

Read more
Netflix raises UK prices
cost of living

Netflix raises UK prices

Cost of standard subscription up to £12.99.

Read more
Average Customer Rating:
4.9/5
Independent Service Rating based on 10784 verified reviews. Read all reviews